Heather Cox Richardson’s post yesterday mentioned the possibility that the threat posed by continued unrest in the US and the GOP’s resolute refusal to admit Biden was elected fairly, its determined efforts to create and sustain a deliberate undermining of trust in the electoral process poses a threat to American government. This threat is thus a threat to the government’s stability and ability to stand behind its debt.
The economy which is in strong rebound from last year is NOT the issue.
It is the possibility that America loses its democratic/two party system of governance in favor of an autocracy.
Some may feel this is over cautious/overblown projection of current situation
But it could also be thinking “outside the box” at what could be a serious attempt to destabilize this Govt
This article is one she referred to. Fitch’s has threaten downgrades before but more tied to,the economy and growing Govt debt. This is first one about the chaos in Govt itself as threat
IMO GOP resistance to a legitimate election has only gotten worse as had some states’ resistance to healthy CoVid policies (TN being most reactionary now)
https://www.fitchratings.com/researc...yJpNnSMuIwyFOY
Imagine what would happen if Finch’s DID downgrade US debt
Turmoil to the nth degree
China major problem
Inflation immediately I suspect in higher rates
But that is just my opinion
No economis here
But we do have significant % of investment in Govt bonds
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